26 Oct Private Members’ Bill proposes farm gate price transparency

On 15 August 2011, Senator Nick Xenophon and House of Representatives Independent Bob Katter announced a proposal for a Farm Gate Price Bill to be presented to both Houses of the Australian Federal Parliament simultaneously.

This private members’ Bill, if passed, would require supermarkets to reveal what percentage of the retail price goes to the farmers. Independent grocers would be exempt, but major supermarkets would be required to publish the farm gate prices at point of sale and also on their websites.

Around 50% of fresh produce purchases are made in either Coles or Woolworths so they have considerable power enabling them to pay back little to the farmers.

Michael White, spokesman for Ausveg, said they would support any move resulting in greater transparency.

“It will be good that the consumer sees the cost of production so they can see we are doing it for as low as possible while retailers may be getting margins up to 100%”

The Farm Gate Pricing Bill will need the support of at least one of Australia’s major political parties to stand any chance of being passed.

Chanel 7 News featured a story on this Bill on Friday Night (19/08/11)

Source: foodlegal.com.au and Channel 7 News